Tobacco Documents Online

r From: Subject: 0 PHILIP MORRIS U.S.A. INTER - OFFICE CORRESPONDENCE 100 Park Avenue, New York, N.Y. 10017 K. L. Oliver G. A. Choyke Date: May 28, 1980 Field Trip Report - NACDS Convention & Jack Eckerd Drug Co. NACDS On May 2, I attended the annual NACDS Convention held in Palm Beach, Florida. Since this convention does not allow exhibits, social contact and committee activity are important to achieve company visibility. I served on the Transportation committee and Gladys assisted the Hospitality committee. During the course of the convention, Mr. and Mrs. Reardon, Mr. and Mrs. Titsworth, and Gladys and I had the opportunity to converse with top executives of dozens of drug chains, many in their Cabanas. Chains with cabanas were: Arnolds Drug CVS Cunningham Drug Dart Drug Drug Fair Jack Eckerd Drug Gray Drug Illinois Thrifty Longs Drug Peoples Drug Rite Aid SupeRX (Kroger) Walgreen Drug Overall, it was a most productive convention. With additional planning and scheduling of appointments with chain executives, next year's convention will be even more productive. ECKERD DRUG HEADQUARTERS - Clearwater, Florida (1,010 stores) May 9, 1980 Accompanied by A.M.C.S. Fred Nassif, I made a business review presentation to Neil Roth, Corporate Merchandise Manager, and Eric Hellman, Associate Merchandise Manager. We discussed non- compliance problems and solutions for their self-service carton fixtures. Neil was very interested in increasing revenues by using our counter display unit but we advised him that due to average store volume of less than 400 c.p.w., he could not participate in both the Plan A and B-1/B-2. We suggested he consider the B-1 in the 190 stores not currently participating in Plan A. 0

-e 0 • 0 K. L. Oliver Page 2 May 28, 1980 Neil was shocked to hear that so many stores did not have carton fixtures and frankly questioned our source (SPACE). He dictated a memo, in our presence, to all Regional Managers to survey stores and advise him of the number of stores not participating in self-service carton merchandising. He wants to have 100% participating and 100% compliance. He also will review all warehouse shipment records and jobber sales to their stores to determine if Eckerd's average store sales exceed 400 c.p.w. (Currently, we show 318 c.p.w. average in SPACE.) Fred re-presented Virginia Slims Lights Regular and Menthol and Marlboro Lights 100's. Neil was impressed with the potential lost sales dollar amount and will reconsider authorizing for warehouses. Fred plans to follow-up on all of the above. Neil asked my permission (granted) to use information from my presentation in his next "Newsletter" to their stores. ECKERD DRUG FLORIDA DIVISION OFFICE - (300 stores) May 9, 1980 I accompanied Fred on a call to Eckerd's Florida Division Office Buyer, Bo Langley. We reviewed some of our corporate recommen- dations with Bo and asked his assistance in gaining distribution of Virginia Slims Lights and Marlboro Lights 100's. He agreed to help by requesting same for Florida Division. Bo would like to see at least two counter displays authorized (Florida Division now has R.J.R. 80 pack @ $11.00) but has met stiff resistance due to pilferage concerns. At my suggestion, he will conduct his own "Tobacco Department" pilferage study since all tobacco items are keyed separately on register. He promised to let us know the results. Fred will follow up. Despite the fact that Eckerd's is the most profitable drug chain in the United States, they are increasing their interest in ciga- rette company merchandising dollars. Incidently, Neil remarked that he appreciates having people from supplier headquarter offices visit him occasionally. GAC:rjt cc: E. D. Blandford H. B. Coleman J. A. Crawford J. J. Gillis C. T. Littleton